Carter’s Inc (CRI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,101,240	1,188,720	1,899,720	1,946,020	1,107,760
Total current liabilities	US$ in thousands	511,862	528,949	717,231	792,532	475,500
Current ratio		2.15	2.25	2.65	2.46	2.33

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,101,240K ÷ $511,862K
= 2.15

The current ratio of Carter’s Inc has shown a declining trend over the last five years, from 2.33 in 2019 to 2.15 in 2023. This ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.

While the current ratio of Carter’s Inc remains above 1 in all years, the decreasing trend may raise concerns about the company's liquidity position. A higher current ratio is generally preferred as it indicates a stronger ability to meet short-term obligations. However, it is essential to consider the industry norms and business characteristics when evaluating the significance of this ratio.

Overall, Carter’s Inc should closely monitor its current ratio and take appropriate measures to ensure it maintains a healthy balance between current assets and current liabilities to support its short-term financial stability.